Second homes could face more than double council tax under new proposals in Scotland

First Minister Humza Yousaf will announce the plans at the Scottish Trades Union Congress on Monday. Credit: Andrew Milligan/PA

Councils in Scotland could charge more than double the full rate of council tax on second homes under new plans.

The proposal is part of a new Scottish Government and Cosla (Convention of Scottish Local Authorities) consultation to help increase available housing.

First Minister Humza Yousaf will announce the plans at the Scottish Trades Union Congress on Monday.

The proposed changes would enable councils to charge up to double the full rate of council tax on second homes from April 2024, bringing them in line with long-term empty homes.

In March Westmorland and Furness Council in Cumbria announced a 100% council tax premium on second home owners from 2024/25.

The consultation will also contain plans to charge more than double the rate on both empty and second homes in future years.

Latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland.

The consultation will also ask for views on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.

The proposed changes are due to come in from April 2024. Credit: Jane Barlow/PA

Currently, this happens if it is let for a total of 70 nights and is available to let for 140 nights in a financial year.

Ahead of the consultation opening, the First Minister said: "We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.

"By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.

"I encourage anyone who is interested to respond to the consultation as we try to prioritise homes for living in, seeking a fair contribution to local services from everyone and recognising the benefits to local economies from self-catering accommodation and second homes.

"All responses will be carefully considered before legislation is introduced to the Scottish Parliament."

Cosla resources spokesperson councillor Katie Hagmann said Scottish local government is "committed to supporting access for everyone in Scotland to an affordable home".

She said: "That is why we are pleased to be launching this joint consultation, as we work to meet the shared aim of creating the right balance to increase the availability of housing and a taxation system that is fair for the tourism industry.

"We also welcome the greater fiscal empowerment for councils to reflect local circumstances this would introduce."

Scottish Labour housing spokesperson Mark Griffin said the proposals are a "pale imitation" of his party's plans.

He said: "Under the SNP, Scotland has developed a housing crisis that has priced thousands out of the market and left many more in precarious residential situations.

"Tinkering around the edges won't do.

"Humza Yousaf must learn from Labour and implement a proper council tax accelerator on empty homes to fund a number one home policy."


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